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Is SogoTrade a Scam? Is SogoTrade Safe, Legitimate, and Insured Firm in 2024?
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Is SogoTrade a Scam?
If you're considering opening an account with SogoTrade and wondering about its credibility and safety, rest assured that we've thoroughly researched this brokerage firm for you. Here’s what we found:
History of SogoTrade
SogoTrade has been registered with the Securities and Exchange Commission since 1986, which means it has been in business for over three decades. This is longer than many well-known brokerage firms like Robinhood, M1 Finance, and E*Trade.
Memberships, Registrations, and Disclosures
SogoTrade is a member of both the SEC and FINRA, the financial industry’s self-regulatory organization. It is also registered with the Nasdaq and the Chicago Board Options Exchange. SogoTrade’s CRD number is 17912, and its SEC ID is 8-35930.
Although SogoTrade has two disclosures on its FINRA profile, this is relatively minor compared to many other firms. For example, E*Trade has more than 200 disclosures, some involving large fines.
SogoTrade is licensed to operate in all U.S. states as well as Puerto Rico and the District of Columbia.
SogoTrade BBB Profile
SogoTrade has a profile with the Better Business Bureau (BBB) but without enough information to provide a rating. It is not BBB accredited, which may simply mean it has not sought accreditation. There are no customer complaints or reviews on its BBB profile, which could indicate few major issues.
SogoTrade Competitors
Is SogoTrade Insured?
SogoTrade is protected by SIPC, which covers each customer up to $500,000 in securities, with a $250,000 limit for cash. Beyond this, SogoTrade's clearing firm, Apex Clearing, provides additional insurance up to $37.5 million per customer, including up to $900,000 in cash, with a total policy limit of $150 million. These insurances cover the quantity of securities, not their market value.
Is Sogotrade a Scam Judgment
Our research indicates that SogoTrade operates legally and is not a scam. It offers solid insurance protections, focusing primarily on market risks for its clients. If you're interested, you can start with a small deposit and explore its trading platform. SogoTrade's commissions start at $2.88 per trade, which is competitive compared to many other brokers, and it even offers to reimburse up to $100 in transfer fees from another broker.
Updated on 7/5/2024.
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